How AI could entrench the big four banks' dominance in Australia
Long encumbered by outdated legacy systems, Australia’s big banks are increasingly leaning on artificial intelligence to entrench their market positions.
When the first neobanks began cropping up in Australia, their pitch to the market was simple: better banks, backed by simpler and newer technology platforms, able to do the things their bigger, less nimble rivals could only dream of.
While a few neobanks were successful, the next wave of competitors are less likely to be able to cut through as the big banks increasingly adopt artificial intelligence. Or so says Tim Coates from global tech consultant Synechron, who is working with them to build their own AI tools.
“If a bank has these sorts of tools that help them be hyper personalised, but at scale, then it's really a huge competitive advantage for them,” Coates told Capital Brief.
Synechron is working with the nine of the top 10 global banks and three of the five big Australian banks on building in-house tools these organisations can own and deploy.
